By Toni Weeks
San Luis Obispo, Calif., Feb. 25 - HSBC USA Inc. priced $503,000 of buffered income notes due Feb. 26, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes above the initial level on any annual observation date, the coupon will be the performance-based coupon of 5%. Otherwise, the coupon will be the minimum rate of 2%. Interest will be payable annually.
If the index falls by up to 20%, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% decline beyond 20%.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Buffered income notes
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Underlying index: | Russell 2000
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Amount: | $503,000
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Maturity: | Feb. 26, 2019
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Coupon: | 5% if index closes above initial level; otherwise, 2%; payable annually
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Price: | Par
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Payout at maturity: | Par if index falls by up to 20%; otherwise, exposure to any losses beyond buffer
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Initial index level: | 1,164.63
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Buffer level: | 80% of initial level
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Pricing date: | Feb. 21
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Settlement date: | Feb. 26
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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Cusip: | 40432XSE2
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